(RTTNews) – Import prices in the U.S. unexpectedly saw further upside in the month of June, according to a report released by the Labor Department on Friday.
The Labor Department said import prices rose by 0.3 percent in June after jumping by a downwardly revised 1.7 percent in May.
Economists had expected import prices to decrease by 0.3 percent compared to the 1.9 percent surge originally reported for the previous month.
The report also said the annual rate of growth by imports accelerated to 7.1 percent in June from 6.7 percent in May, reflecting the largest over-the-year increase since August 2022.
The unexpected monthly increase in imports prices came as prices for non-fuel prices rose by 0.4 percent in June after climbing by 0.7 percent in May.
The Labor Department said higher prices for non-fuel industrial supplies and materials, capital goods and consumer goods more than offset lower prices for automotive vehicles, parts, and
engines as well as foods, feeds, and beverages.
A pullback in prices for imported petroleum helped limit the upside, with prices for fuel imports falling by 0.4 percent in June after soaring by 12.6 percent in May.
“The data do not capture the fall in oil prices through June, which should offer major relief in next month’s report,” said Grace Zwemmer, U.S. Economist at Oxford Economics. “Modest strengthening in the US dollar will add further relief to import price measures of the coming months as well.”
Meanwhile, the report said export prices slid by 0.6 percent in June after growing by a downwardly revised 1.2 percent in May.
Economists had expected export prices to fall by 0.4 percent compared to the 1.3 percent jump originally reported for the previous month.
The Labor Department also said the annual rate of growth by export prices slowed to 10.2 percent in June from 11.2 percent in May.
While prices for agricultural exports edged up by 0.2 percent in June after increasing by 0.9 percent in May, prices for non-agricultural exports fell by 0.7 percent in June after jumping by 1.2 percent in May.
